Can I retire at age 40 with 631,000?

Use the below retirement simulation to view the chances of a successful retirement.
Confused? Try the simple retirement calculator
About Your Retirement ?
Current Age
Retirement Age
Current Savings $
Annual Deposits $
Annual Withdrawals $
Stock market crash:
Portfolio ?
% in Stocks:
% in Bonds:
% in Cash:
Modify Stock Returns:
0%
Modify Bond Returns:
0%
Modify Cash Returns:
0%
Modify Inflation:
0%
How much money do I need to retire?

This retirement calculator runs simulations based on past data from the S&P 500, 10 Year Treasury Bond, 3 month T-Bill, and US inflation. For each year of each simulation, a random return and inflation amount is chosen.

How to use: Enter your current age and the age when you retire. Then enter your current savings, the amount that you can save annually before you retire, and the amount that you plan to withdraw after retirement. Your annual deposits and withdrawals take inflation into account. For example, if you need $50,000 to live on in retirement using today's dollars, we will automatically take into account the cost of living for your retirement years. The same is true for your annual deposits. Next, decide if you'd like to simulate a stock market crash.

In the portfolio section, choose the makeup of your portfolio with stocks, bonds, and cash. Cash assumes that your money is stored in a savings account. You can then alter the future returns and inflation. For example, if the market has historically returned about 10%, but you think the future will be worse, modify the stock returns by -3%, and the future returns will average out to 7%. Investment fees can also lower stock market returns. Many index funds and ETFs offer extremely low fees and expenses.

Many people receive income in retirement, such as social security, pension plans, part time jobs, annuities, and other benefits. This would allow you to take out smaller distributions every year. Please note that taxes must also be considered, but are not used in this simulation. A 401k, Roth IRA, and Traditional IRA are taxed differently than a standard investment account, as are dividends.

Note: This assumes that the future is at least somewhat like the past. In reality, anything could happen. The Soviet Union collapsed, Japan's Nikkei Index is still well below its 1989 peak. Numerous other markets have changed drastically and never recovered. However, this online tool is helpful in retirement planning and estimating how much you might need for retirement, especially those hoping to retire early. We recommend receiving advice from a financial planner.

Want to retire with $631,000?

Depending on your rate of return and investment timeframe, you'll need to save this amount every month.
2%4%6%8%10%12.5%
1 years$52,107$51,643$51,190$50,748$50,317$49,791
2 years$25,796$25,315$24,850$24,398$23,960$23,431
3 years$17,026$16,544$16,079$15,632$15,201$14,685
4 years$12,642$12,161$11,702$11,262$10,842$10,342
5 years$10,013$9,535$9,081$8,650$8,242$7,760
6 years$8,260$7,786$7,339$6,918$6,521$6,059
7 years$7,009$6,539$6,099$5,687$5,304$4,860
8 years$6,071$5,605$5,172$4,771$4,400$3,975
9 years$5,342$4,880$4,455$4,064$3,705$3,299
10 years$4,759$4,301$3,884$3,503$3,157$2,769
11 years$4,282$3,829$3,419$3,049$2,715$2,346
12 years$3,885$3,437$3,034$2,674$2,353$2,001
13 years$3,549$3,106$2,711$2,361$2,052$1,718
14 years$3,262$2,823$2,436$2,096$1,799$1,481
15 years$3,013$2,579$2,199$1,869$1,584$1,283
16 years$2,796$2,366$1,994$1,674$1,400$1,115
17 years$2,604$2,179$1,814$1,504$1,241$972
18 years$2,434$2,014$1,656$1,355$1,103$849
19 years$2,281$1,866$1,516$1,224$984$743
20 years$2,145$1,734$1,392$1,109$879$652
21 years$2,021$1,615$1,280$1,006$786$573
22 years$1,909$1,508$1,180$915$705$504
23 years$1,806$1,410$1,089$833$633$444
24 years$1,713$1,321$1,007$760$569$392
25 years$1,627$1,240$933$694$512$346
26 years$1,548$1,165$865$635$461$305
27 years$1,474$1,097$804$581$415$270
28 years$1,406$1,034$747$532$375$239
29 years$1,343$975$695$488$339$211
30 years$1,284$921$648$448$306$187
31 years$1,230$870$604$411$277$166
32 years$1,178$824$563$378$250$147
33 years$1,130$780$526$348$226$130
34 years$1,085$739$491$320$205$116
35 years$1,042$701$459$295$186$103
36 years$1,002$666$430$271$168$91
37 years$964$632$402$250$152$81
38 years$929$601$377$230$138$72
39 years$895$571$353$212$125$64
40 years$863$543$331$196$114$56
41 years$832$517$310$181$103$50
42 years$803$493$291$167$94$45
43 years$776$469$273$154$85$40
44 years$750$447$256$142$77$35
45 years$725$427$241$131$70$31
46 years$701$407$226$121$64$28
47 years$678$388$212$112$58$25
48 years$657$371$200$104$52$22
49 years$636$354$188$96$48$19
50 years$616$338$176$88$43$17

Sample Expected Returns by Investment Class

How long will my money last in retirement? Person retiring at age 40 starting with $631,000, adding $5,751 every year, while hoping to spend $53,175 every year in retirement. These numbers increase with inflation.
Reality usually performs much different than the expected returns. This uses historical averages, but anything can happen. In general, riskier investments have greater returns on average, but more volatility in the short term.
Age Total: 100% Stocks Total: 100% Bonds Total: 100% Cash Total: 72/21/7 Blend
39$631,000$631,000$631,000$631,000
40$701,294$667,851$658,071$750,653
41$716,248$643,998$623,538$760,146
42$730,946$617,194$586,067$763,346
43$745,304$587,238$545,502$765,362
44$759,230$553,918$501,681$766,065
45$772,621$517,010$454,437$765,310
46$785,360$476,275$403,593$762,940
47$797,318$431,463$348,964$758,783
48$808,348$382,309$290,358$752,651
49$818,290$328,532$227,575$744,341
50$826,961$269,835$160,404$733,628
51$834,160$205,907$88,627$720,268
52$839,664$136,416$12,016$703,993
53$843,222$61,013$0$684,512
54$844,558$0$0$666,715
55$843,362$0$0$651,116
56$839,293$0$0$647,320
57$831,972$0$0$640,924
58$820,976$0$0$631,595
59$805,839$0$0$618,961
60$786,044$0$0$602,612
61$761,017$0$0$582,091
62$730,123$0$0$556,894
63$692,660$0$0$526,463
64$647,850$0$0$490,180
65$594,831$0$0$447,362
66$532,654$0$0$397,253
67$460,264$0$0$339,017
68$376,499$0$0$271,730
69$280,073$0$0$194,371
70$169,564$0$0$105,811
71$43,402$0$0$4,804
72$0$0$0$0
73$0$0$0$0
74$0$0$0$0
75$0$0$0$0
76$0$0$0$0
77$0$0$0$0
78$0$0$0$0
79$0$0$0$0
80$0$0$0$0
81$0$0$0$0
82$0$0$0$0
83$0$0$0$0
84$0$0$0$0
85$0$0$0$0
86$0$0$0$0
87$0$0$0$0
88$0$0$0$0
89$0$0$0$0
90$0$0$0$0
91$0$0$0$0
92$0$0$0$0
93$0$0$0$0
94$0$0$0$0
95$0$0$0$0
96$0$0$0$0
97$0$0$0$0
98$0$0$0$0
99$0$0$0$0
100$0$0$0$0